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CJ Group sanctioned by South Korean regulator over disguised credit guarantees to affiliates

( July 16, 2025, 04:24 GMT | Official Statement) -- MLex Summary: CJ Group has been tentatively fined 6.5 billion won (about $4.7 million)  by South Korea’s antitrust regulator for unfairly supporting two financially distressed affiliates through disguised credit guarantees. The Korea Fair Trade Commission said it found that CJ and CJ CGV used total-return swap contracts in 2015 to help CJ Engineering & Construction and Simuline issue perpetual convertible bonds at low interest rates they could not have secured on their own. These contracts shifted credit risk to the supporting firms without real investment intent, allowing the affiliates to avoid market exit and improve their competitive standing. The regulator determined that the transactions distorted fair competition and cited a breach of competition law provisions on unfair internal support.The statement, in Korean, is attached....

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